Homeowners saw their annual insurance premiums increase 64% on average between 2021 and 2025, according to a new study released by Newrez on Thursday.

The average homeowners insurance premium jumped from $1,597 to $2,625 during that period, with double-digit increases between 2022 and 2024, reported Newrez, a large U.S. mortgage lender and servicer. The rate of growth slowed in 2025 but still increased 10% on average.

The results come from the analysis of about 1.2 million Newrez-serviced residential mortgage loans. The data was taken from loans that Newrez serviced across two periods: Dec. 31, 2016, through Dec. 31, 2020; and Dec. 31, 2021, through Dec. 31, 2025.

“Homeowners insurance has become a much larger component of housing costs for many homeowners since 2021, as more frequent severe weather events and higher rebuilding costs are putting pressure on insurers,” stated Shane Ross, head of servicing at Newrez, in a release announcing the results.

“At the same time, while certain borrower segments face more acute affordability pressures, overall mortgage delinquency rates remain below historical averages, suggesting a broader level of homeowner resilience even as insurance and other housing costs rise,” Ross added.

The study revealed premiums vary significantly by geography, with the regional differences attributed to “a range of market factors,” including catastrophe exposure, rebuilding costs and underwriting practices.

At year-end 2025, Louisiana had the highest average annual premium of $4,238, followed by Florida ($4,060) and Texas ($3,952). Nebraska ($3,898) and Colorado ($3,854) were close behind.

The largest homeowners insurance premium increase was seen in Arizona, up 94% from 2021 to 2025. According to the study, 11 states recorded increases of at least 75% during that period.

Behind Arizona were Idaho (88%), Iowa (83%), South Dakota (83%) and Utah (82%). Only five states posted increases below 50%, with Alaska seeing the smallest increase at 27%.

Daren Blomquist, vice president of market economics at Auction.com, told Scotsman Guide he was encouraged to see a mortgage servicer like Newrez “become more proactive in their communication with borrowers about rising insurance rates, an often-overlooked variable cost of homeownership that is not fixed like the principal and interest payments for most borrowers.”

He thinks this proactivity should benefit borrowers by preparing them for monthly payment increases while “giving them some runway to shop around for a lower-cost insurance.”

It should also benefit mortgage servicers, he added, by “helping them to build valuable trust with borrowers while also helping to mitigate the rising risk of mortgage delinquency that comes with spiking home insurance costs.”